§11373 Allocation and Distribution of Assistance

Summary

The Secretary must divide the program money among States, large cities, and urban counties so each gets the same share they had under section 5306 in the prior fiscal year. If a city or county would get less than 0.05 percent of the amounts appropriated under section 11364 and made available for this part in any fiscal year, that money goes to the State instead, except for one special type of city: a city in a State without counties that had a population greater than 40,000 but less than 50,000 for the fiscal year 1987 block grant allocation and that got more than $1,000,000 in fiscal year 1987 community development block grant funds — that city still gets its allocation directly. The Secretary must also allocate funds (for amounts appropriated after July 22, 1987) to the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and any other U.S. territory under a formula the Secretary creates. Local governments can pass some or all of their money to private nonprofits that help homeless people, to public housing agencies (see section 1437a(b)(6) for that definition), or to local redevelopment authorities under State law. States can also pass money to such nonprofits if the local government where the project will be located approves. The Secretary must reallocate unused, returned, or amounts made available under the 0.05 percent rule at least once each fiscal year. If a city or county does not get approval of its comprehensive plan within the 90-day period after funds first become available that year, its money goes to the State if the State’s plan is approved; if not, those funds are reallocated to other places with extraordinary need or large numbers of homeless people as the Secretary decides. The same 90-day rule applies if a State fails to get plan approval. Recipients may ask for a waiver of the spending cap in section 11374(b) for amounts for fiscal years 2027 through 2030. A waiver request may include up to: a demonstration of local need, a detailed plan for using the funds, a justification showing how it supports the recipient’s most recent Consolidated Plan, and any public input. Recipients must notify subrecipients and local Continuums of Care and must solicit public input before filing. The Secretary will post requests on HUD’s website, decide within 60 days, and will deny any request from a recipient that relocates or threatens to relocate people or their property without providing emergency shelter, rapid rehousing, transitional housing, permanent supportive housing, or other permanent housing options. Approved waivers last for the 2027–2030 grant period unless the recipient revokes them in writing after getting input from subrecipients; HUD will publish any revocations and the recipient’s justification on its website.